Sign InMULN Stock Plummets to 52-Week Low Amid Heavy Selling Pressure and Financial Turmoil
Summary
On July 18, 2025, Mullen Automotive's stock plummeted to $0.0894 amid severe technical weakness and mounting losses, leaving it vulnerable to further declines despite potential short-term rebounds.
Technical Analysis
MULN closed at $0.0894 on July 18, 2025, down 13.04%, hitting a low of $0.0871 and a high of $0.105 within the session. The stock trades near its 52-week low ($0.0871), indicating extreme bearish momentum. Volume surged to 85.38 million, over four times the average of 21.21 million, reflecting heavy selling pressure. The Relative Strength Index (RSI) at 2 signals the stock is deeply oversold, though historically such levels may precede short-term bounces. The Moving Average Convergence Divergence (MACD) remains significantly negative (-1.69), signaling sustained downward momentum. Price resides far below the 50-day moving average ($7.61) and the 200-day moving average ($472,713.12), underscoring structural weakness and potential illiquidity in moving averages due to price scale distortion. Average True Range (ATR) at 1,270.47 appears anomalous, likely distorted by price scale or data irregularities.
Support levels are absent, while immediate resistance stands at $0.1028. Given the lack of technical support and heavy selling volume, the stock is vulnerable to further downside or, at best, a limited mean-reversion rally on July 21. Over the next week, unless volume and buying interest pick up substantially, the downward trend is expected to persist.
Fundamental Analysis
Mullen Automotive reports a market capitalization of approximately $179,500, reflecting a micro-cap classification with extreme volatility risks. Trailing twelve months earnings per share (EPS) of -43,028.52 demonstrate deep and sustained losses. The Price-to-Earnings (PE) ratio is unavailable due to negative earnings. The company plans an earnings announcement on August 11, 2025, which could be a catalyst but likely contingent on operational improvements.
Recent corporate actions detail Mullen’s rebranding to Bollinger Innovations, Inc., with consolidation of operations and significant cost reductions exceeding $35 million annually, including elimination of 155 positions. The shift to rebranded product offerings such as the Bollinger B4 electric truck, alongside anticipated commercial EV incentives in New York State ranging from $85,000 to $144,000, could improve sales order flows in the near term.
However, the company's current balance sheet, operational cash flow, and scalability remain opaque, with no clear intrinsic value metrics indicating positive cash generation or business viability. The intrinsic value is severely impaired by ongoing losses and questionable liquidity.
Price Performance Outlook
For July 21, 2025, the technical oversold signals may enable a short-lived technical rebound towards the resistance level near $0.1028, though gains will be limited by fundamental weakness. For the upcoming week, absent meaningful news beyond operational restructuring or confirmed sales orders, performance is likely to remain under pressure. The stock remains highly speculative with potential for further decline given its volatile and tenuous financial footing.
Intrinsic Value and Long-Term Investment Potential
Intrinsic valuation cannot be reasonably established given negative earnings on a massive scale and lack of positive cash flow. The ongoing corporate restructuring and focus on cost reduction may reduce burn rates but do not guarantee profitability or sustainable growth. The nascent commercial EV market tailwinds and state-level incentives provide some growth prospects but compete against formidable challenges including capital constraints, brand repositioning risks, and limited market confidence.
Long-term investment potential hinges on successful product execution, market penetration, and balance sheet stabilization post name change and operational consolidation. Absent these, intrinsic value remains speculative and likely below current market levels.
Overall Evaluation
MULN classifies as a Sell candidate under current conditions. The stock suffers from colossal financial losses, shareholder dilution risks, illiquid trading, and structurally weak technical posture. While corporate restructuring and favorable macro EV incentives present potential catalysts, the execution risk is substantial with scant near-term evidence of financial turnaround. Investors confronting this stock face elevated risk, and the prevailing consensus reflects a negative stance.
